Fortis Perspectives – February 2018

FROM THE DESK OF OUR MANAGING PARTNER, RANDY HUBSCHMIDT

Today’s Multifamily Housing Sector

In Order to Sell Right, You First Have to Buy Right

Key Takeaways

Proper market analysis is essential for success when investing in multifamily housing.

Multifamily housing should remain strong as new tax laws make single family ownership less attractive and as downsizing Boomers migrate to urban markets vacated by Millennials.

There is still plenty of upside left for properties that can be upgraded quickly and cost effectively and can be re-positioned in the market.

Recent stock market volatility has caused many to wonder if the real estate market has also hit its near-term peak. Many investors have asked me if it’s time to take some chips off the table or diversify into other sectors of the real estate market.

Real estate is notorious for its boom and bust cycles. As is the case with other asset classes, as returns continue to increase, more capital is attracted. As more capital is attracted, investors become increasingly aware that returns are on the upswing and thus, still more capital flows in that direction. At some point the music stops and you don’t want to be the one left without a chair. Sound familiar?

How real estate differs from stocks

Unlike publicly traded stocks, it takes time to deploy capital into real estate. If you are talking about a development, entitlements take time, contractor bids are collected, building commences and finally “lease up” (attracting tenants) begins. This process can take several years. By the time lease-up begins, the market may have shifted and the projected rents may be unachievable. If the projections are rosy to begin with, or if the project is over-leveraged, then returns on this investment will suffer.

If we’re talking about a “reposition” or a “value-add” project, there should be existing cash flow that can be reinvested into the property to make the required capital improvements. If the property can be quickly upgraded and repositioned in the market, then its owners will be in a better position to take advantage of the market upswing before time runs out.

Unfortunately, real estate investors often enter the market too late in the cycle and end up buying at the top of the market. This may certainly be the case when it comes to some of the multi-family assets being purchased today.

How real estate is like the stock market

Real estate and equities are in the sense that it’s very hard to financially engineer your way out of a bad investment or to rely on the “next bigger sucker” to provide your exit. If buying real estate at 5 cap or buying a tech stock at 100 P/E, how much more room is there to go? As the old saying goes, “In order to sell right, you first have to buy right.”

If you buy right, you can always hold the asset for the cash flow it generates and sell when the market turns back in your favor.

If you buy right, you can sell when you want to, not when you have to.

The MFE report also said to expect continued outperformance in the secondary and tertiary markets despite the increased competition for high quality assets. Primary markets continue to attract the most attention driving capitalization rates down. Thus, those assets may yield lower overall returns.

Challenges will be ‘the same, but different’

MFE’s report also had an interesting take on Millennials and their propensity to rent in urban markets: “Challenges will be ‘the same, but different.’” MFE and other market observers say statistics no longer support the belief that millennials will be lifelong renters—i.e. perpetual members of the sharing economy that not only don’t buy homes in the suburbs; they don’t even commit to purchasing cars in order to get around.

Not so. Millennials are clearly delaying marriage, children and household formation later than previous generations did. But, here’s the thing: Eventually they are getting married, starting families, buying cars and migrating to the suburbs. This trend would normally be adverse news for the multi-family housing sector, but there’s another powerful trend taking place–aging Boomers are doing the reverse. Boomers are downsizing, which means they are selling their suburban homes and moving into multifamily units in urban areas. I suspect this trend to continue for the foreseeable future.

As Bendix Anderson recently explained in National Real Estate Investor (NREI), The Apartment Sector Boom (Is) Set to Continue in 2018. Anderson’s report said the new tax law changes will create an increase in overall renters as the tax benefits of home ownership have been reduced for the time being. The NREI report also said that Developers will continue to focus on the primary markets, as well as on gentrifying surrounding areas and on building luxury apartments. According to the report, these developments charge rents at the top of their respective markets and face significant competition from other luxury apartment offerings. The report also said it will be increasingly difficult for those properties to raise rents.

At Fortis, we tend to agree with Anderson’s assertion that the strongest returns can be achieved in the secondary markets—markets that are located close enough to primary markets so they can “siphon off” prospective tenants who’ve been priced out of primary markets and where competition among buyers is reduced.

Conclusion

Real estate has, and always will be, an important component for a well-balanced long term portfolio. If you or someone close to you is concerned about your lack of diversification or wealth building strategies, please don’t hesitate to contact us.

Randy Hubschmidt
Managing Partner, Fortis Wealth

Fortis Advisors, LLC is a registered investment adviser with the Securities and Exchange Commission. You can read more about the Fortis team at www.fortiswealth.com. To the extent that content includes references to securities, those references do not constitute an offer or solicitation to buy, sell or hold such security as information is provided for educational purposes only. Articles should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any securities or asset classes mentioned. Articles have been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Securities discussed may not be suitable for all investors. Please keep in mind that a company’s past financial performance, including the performance of its share price, does not guarantee future results. Material compiled by Fortis is based on publically available data at the time of compilation. Fortis makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to the use such data. Material for market review represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Indices that may be included herein are unmanaged indices and one cannot directly invest in an index. Index returns do not reflect the impact of any management fees, transaction costs or expenses. The index information included herein is for illustrative purposes only

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YOU SHOULD PRINT OR SAVE THIS STATEMENT BY USING THE “PRINT” OR “FILE SAVE” OPTIONS ON YOUR INTERNET BROWSER. ANY CHANGES, MODIFICATIONS, OR ADDITIONS TO, OR DELETIONS FROM, THIS STATEMENT SHALL BE EFFECTIVE UPON POSTING ON THE WEBSITE AND WE WILL NOTIFY YOU THEREOF BY E-MAIL AND/OR BY POSTING A MESSAGE ON THE WEBSITE OR TO YOUR PORTAL ACCOUNT.

In this Electronic Agreement and Disclosure Statement (“Statement”), please remember that “you” and “your” refer to the person who is establishing a Portal Account, as well as any future accounts, and “we”, “us” and “our” refer to Fortis Wealth (“Fortis”). Relevant agreements, documents, forms and other information, including without limitation disclosures required to be made or furnished by Fortis with respect to all Portal Accounts, by the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and other applicable laws and regulations (collectively, “Documents and Disclosures”), will be provided to you electronically unless indicated otherwise. Among such Documents and Disclosures to be provided to you electronically with respect to your Portal Account and any future Portal Accounts that you may create are the following:

The Fortis Website User Agreement and all amendments, notices and other agreements which supplement or relate to such User Agreement;

The Fortis Discretionary Investment Advisory Agreement and all Account application forms, agreements and documents required to be completed and submitted to a designated broker-dealer and Custodian (“Broker Documents”) and all agreements, amendments, notices and other agreements which supplement or relate to such Discretionary Investment Advisory Agreement and Broker Documents;

The Fortis Form ADV Part 2A Brochure and Part 2B portfolio manager supplements in compliance with Rule 204-3 under the Advisers Act;

Notice of the Fortis Privacy Policy

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Any other notices and communications pertaining to your Portal Account and Services.

BY CREATING A PORTAL ACCOUNT, AND THEN ACCESSING YOUR PORTAL ACCOUNT, YOU ARE ACCEPTING THIS STATEMENT AND CONSENTING TO RECEIVE DOCUMENTS AND DISCLOSURES ELECTRONICALLY.

Following the termination of your status as a Fortis Client, the information regarding your Portal Account, including the Documents and Disclosures, will be available upon request by sending us an e-mail at info@fortis-wealth.com or by calling 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. When revised or new Documents and/or Disclosures are available on the Website, to the extent relevant or applicable to you and if required by applicable legal, regulatory or contractual requirements, we will send a message to your e-mail address on file or otherwise notify you of their availability.

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For client support or technical assistance regarding your Portal Account, including the 2 Documents and Disclosures and the Website, you may send an e-mail to info@fortis-wealth.com or call us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. You may request a paper copy of any of the Documents and Disclosures at any time by sending us an e-mail at info@fortis-wealth.com or by calling us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. We will not charge you a fee for the paper copy.

This consent to receive the Documents and Disclosures electronically will apply on an ongoing basis unless you withdraw your consent. You may withdraw your consent to receive any of the Documents and Disclosures electronically by sending us an e-mail at info@fortis-wealth.com or calling 610-313-0910. However, if you do withdraw your consent Fortis will terminate your Portal Account. If you withdraw your consent to receive documents and disclosures electronically, your only option is to receive documents and disclosures in a paper format. To withdraw your consent and terminate your Portal Account, please call us at 610-313-0910.

By creating a Portal Account, and then accessing your Portal Account, you are indicating that you have reviewed all of the Documents and Disclosures made available to you on the Website. You are also acknowledging that your initial use of your Portal Account will constitute your agreement to be bound by the terms and conditions contained within such Documents and Disclosures.

By agreeing to this Statement, you acknowledge that you have read, understand, and agree to be bound by the terms above. If you do not agree to be bound by the terms above but would like to establish a Portal Account, DO NOT continue with the online process. Instead, please send us an e-mail at info@fortis-wealth.com or call us at 610-313-0910

Because the Fortis Portal Account relates to the functionality of the Website Fortis reserves the right to refuse to establish a Portal Account that is not subject to this Statement. You agree that the Documents and Disclosures required to be provided at the time a Portal Account is being created and any supplemental agreements or subsequent notices of changes or amendments will be provided electronically, and you confirm that you will download or print all electronically-provided documents for your records. You acknowledge that you can access the Documents and Disclosures that are provided electronically on the Website and via e-mail.

TERMS OF USE

BY CREATING A PORTAL ACCOUNT ON FORTIS WEALTH’S CLIENT PORTAL AT (THE “WEBSITE”) IN ORDER TO OBTAIN ACCESS TO AUTOMATED INVESTMENT INFORMATION THROUGH THE WEBSITE (“SERVICES”), YOU AGREE THAT UNLESS INDICATED OTHERWISE, THE DOCUMENTS AND DISCLOSURES REQUIRED TO BE PROVIDED TO YOU WITH RESPECT TO YOUR PORTAL ACCOUNT AND ANY FUTURE PORTAL ACCOUNTS UNDER APPLICABLE LAWS AND REGULATIONS MAY BE PROVIDED TO YOU ELECTRONICALLY. READ THE INFORMATION BELOW CAREFULLY BEFORE CONSENTING TO RECEIVE DOCUMENTS AND INFORMATION ELECTRONICALLY AT THIS WEBSITE AND VIA ELECTRONIC MAIL (“E-MAIL”).

YOU SHOULD PRINT OR SAVE THIS STATEMENT BY USING THE “PRINT” OR “FILE SAVE” OPTIONS ON YOUR INTERNET BROWSER. ANY CHANGES, MODIFICATIONS, OR ADDITIONS TO, OR DELETIONS FROM, THIS STATEMENT SHALL BE EFFECTIVE UPON POSTING ON THE WEBSITE AND WE WILL NOTIFY YOU THEREOF BY E-MAIL AND/OR BY POSTING A MESSAGE ON THE WEBSITE OR TO YOUR PORTAL ACCOUNT.

In this Electronic Agreement and Disclosure Statement (“Statement”), please remember that “you” and “your” refer to the person who is establishing a Portal Account, as well as any future accounts, and “we”, “us” and “our” refer to Fortis Wealth (“Fortis”). Relevant agreements, documents, forms and other information, including without limitation disclosures required to be made or furnished by Fortis with respect to all Portal Accounts, by the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and other applicable laws and regulations (collectively, “Documents and Disclosures”), will be provided to you electronically unless indicated otherwise. Among such Documents and Disclosures to be provided to you electronically with respect to your Portal Account and any future Portal Accounts that you may create are the following:

The Fortis Website User Agreement and all amendments, notices and other agreements which supplement or relate to such User Agreement;

The Fortis Discretionary Investment Advisory Agreement and all Account application forms, agreements and documents required to be completed and submitted to a designated broker-dealer and Custodian (“Broker Documents”) and all agreements, amendments, notices and other agreements which supplement or relate to such Discretionary Investment Advisory Agreement and Broker Documents;

The Fortis Form ADV Part 2A Brochure and Part 2B portfolio manager supplements in compliance with Rule 204-3 under the Advisers Act;

Notice of the Fortis Privacy Policy

All other required and permitted legal disclosures; and

Any other notices and communications pertaining to your Portal Account and Services.

BY CREATING A PORTAL ACCOUNT, AND THEN ACCESSING YOUR PORTAL ACCOUNT, YOU ARE ACCEPTING THIS STATEMENT AND CONSENTING TO RECEIVE DOCUMENTS AND DISCLOSURES ELECTRONICALLY.

Following the termination of your status as a Fortis Client, the information regarding your Portal Account, including the Documents and Disclosures, will be available upon request by sending us an e-mail at info@fortis-wealth.com or by calling 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. When revised or new Documents and/or Disclosures are available on the Website, to the extent relevant or applicable to you and if required by applicable legal, regulatory or contractual requirements, we will send a message to your e-mail address on file or otherwise notify you of their availability.

You are responsible for maintaining a valid e-mail address and all software and hardware necessary to receive, read and send e-mail. You must provide us with your current e-mail address when you establish your Portal Account and promptly notify us of any changes to your e-mail address by updating this information in your Portal Account on the Website.

To receive electronically the Documents and Disclosures, you will need access to a computer and web browser and may also need Adobe Reader, Microsoft Word and Microsoft Excel. You also will need access to e-mail and to a printer or the ability to download information in order to keep copies for your records. To the extent we make changes to the system hardware and software requirements that you need in order to receive and access the Documents and Disclosures electronically, we will notify you of those changes via e-mail and/or by posting information about the new system requirements on the Website. By establishing and then accessing a Portal Account you are indicating that you have the capability to access the Documents and Disclosures and download or print copies of them for your records.

For client support or technical assistance regarding your Portal Account, including the 2 Documents and Disclosures and the Website, you may send an e-mail to info@fortis-wealth.com or call us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. You may request a paper copy of any of the Documents and Disclosures at any time by sending us an e-mail at info@fortis-wealth.com or by calling us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. We will not charge you a fee for the paper copy.

This consent to receive the Documents and Disclosures electronically will apply on an ongoing basis unless you withdraw your consent. You may withdraw your consent to receive any of the Documents and Disclosures electronically by sending us an e-mail at info@fortis-wealth.com or calling 610-313-0910. However, if you do withdraw your consent Fortis will terminate your Portal Account. If you withdraw your consent to receive documents and disclosures electronically, your only option is to receive documents and disclosures in a paper format. To withdraw your consent and terminate your Portal Account, please call us at 610-313-0910.

By creating a Portal Account, and then accessing your Portal Account, you are indicating that you have reviewed all of the Documents and Disclosures made available to you on the Website. You are also acknowledging that your initial use of your Portal Account will constitute your agreement to be bound by the terms and conditions contained within such Documents and Disclosures.

By agreeing to this Statement, you acknowledge that you have read, understand, and agree to be bound by the terms above. If you do not agree to be bound by the terms above but would like to establish a Portal Account, DO NOT continue with the online process. Instead, please send us an e-mail at info@fortis-wealth.com or call us at 610-313-0910

Because the Fortis Portal Account relates to the functionality of the Website Fortis reserves the right to refuse to establish a Portal Account that is not subject to this Statement. You agree that the Documents and Disclosures required to be provided at the time a Portal Account is being created and any supplemental agreements or subsequent notices of changes or amendments will be provided electronically, and you confirm that you will download or print all electronically-provided documents for your records. You acknowledge that you can access the Documents and Disclosures that are provided electronically on the Website and via e-mail.

TERMS OF USE

BY CREATING A PORTAL ACCOUNT ON FORTIS WEALTH’S CLIENT PORTAL AT (THE “WEBSITE”) IN ORDER TO OBTAIN ACCESS TO AUTOMATED INVESTMENT INFORMATION THROUGH THE WEBSITE (“SERVICES”), YOU AGREE THAT UNLESS INDICATED OTHERWISE, THE DOCUMENTS AND DISCLOSURES REQUIRED TO BE PROVIDED TO YOU WITH RESPECT TO YOUR PORTAL ACCOUNT AND ANY FUTURE PORTAL ACCOUNTS UNDER APPLICABLE LAWS AND REGULATIONS MAY BE PROVIDED TO YOU ELECTRONICALLY. READ THE INFORMATION BELOW CAREFULLY BEFORE CONSENTING TO RECEIVE DOCUMENTS AND INFORMATION ELECTRONICALLY AT THIS WEBSITE AND VIA ELECTRONIC MAIL (“E-MAIL”).

YOU SHOULD PRINT OR SAVE THIS STATEMENT BY USING THE “PRINT” OR “FILE SAVE” OPTIONS ON YOUR INTERNET BROWSER. ANY CHANGES, MODIFICATIONS, OR ADDITIONS TO, OR DELETIONS FROM, THIS STATEMENT SHALL BE EFFECTIVE UPON POSTING ON THE WEBSITE AND WE WILL NOTIFY YOU THEREOF BY E-MAIL AND/OR BY POSTING A MESSAGE ON THE WEBSITE OR TO YOUR PORTAL ACCOUNT.

In this Electronic Agreement and Disclosure Statement (“Statement”), please remember that “you” and “your” refer to the person who is establishing a Portal Account, as well as any future accounts, and “we”, “us” and “our” refer to Fortis Wealth (“Fortis”). Relevant agreements, documents, forms and other information, including without limitation disclosures required to be made or furnished by Fortis with respect to all Portal Accounts, by the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and other applicable laws and regulations (collectively, “Documents and Disclosures”), will be provided to you electronically unless indicated otherwise. Among such Documents and Disclosures to be provided to you electronically with respect to your Portal Account and any future Portal Accounts that you may create are the following:

The Fortis Website User Agreement and all amendments, notices and other agreements which supplement or relate to such User Agreement;

The Fortis Discretionary Investment Advisory Agreement and all Account application forms, agreements and documents required to be completed and submitted to a designated broker-dealer and Custodian (“Broker Documents”) and all agreements, amendments, notices and other agreements which supplement or relate to such Discretionary Investment Advisory Agreement and Broker Documents;

The Fortis Form ADV Part 2A Brochure and Part 2B portfolio manager supplements in compliance with Rule 204-3 under the Advisers Act;

Notice of the Fortis Privacy Policy

All other required and permitted legal disclosures; and

Any other notices and communications pertaining to your Portal Account and Services.

BY CREATING A PORTAL ACCOUNT, AND THEN ACCESSING YOUR PORTAL ACCOUNT, YOU ARE ACCEPTING THIS STATEMENT AND CONSENTING TO RECEIVE DOCUMENTS AND DISCLOSURES ELECTRONICALLY.

Following the termination of your status as a Fortis Client, the information regarding your Portal Account, including the Documents and Disclosures, will be available upon request by sending us an e-mail at info@fortis-wealth.com or by calling 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. When revised or new Documents and/or Disclosures are available on the Website, to the extent relevant or applicable to you and if required by applicable legal, regulatory or contractual requirements, we will send a message to your e-mail address on file or otherwise notify you of their availability.

You are responsible for maintaining a valid e-mail address and all software and hardware necessary to receive, read and send e-mail. You must provide us with your current e-mail address when you establish your Portal Account and promptly notify us of any changes to your e-mail address by updating this information in your Portal Account on the Website.

To receive electronically the Documents and Disclosures, you will need access to a computer and web browser and may also need Adobe Reader, Microsoft Word and Microsoft Excel. You also will need access to e-mail and to a printer or the ability to download information in order to keep copies for your records. To the extent we make changes to the system hardware and software requirements that you need in order to receive and access the Documents and Disclosures electronically, we will notify you of those changes via e-mail and/or by posting information about the new system requirements on the Website. By establishing and then accessing a Portal Account you are indicating that you have the capability to access the Documents and Disclosures and download or print copies of them for your records.

For client support or technical assistance regarding your Portal Account, including the 2 Documents and Disclosures and the Website, you may send an e-mail to info@fortis-wealth.com or call us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. You may request a paper copy of any of the Documents and Disclosures at any time by sending us an e-mail at info@fortis-wealth.com or by calling us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. We will not charge you a fee for the paper copy.

This consent to receive the Documents and Disclosures electronically will apply on an ongoing basis unless you withdraw your consent. You may withdraw your consent to receive any of the Documents and Disclosures electronically by sending us an e-mail at info@fortis-wealth.com or calling 610-313-0910. However, if you do withdraw your consent Fortis will terminate your Portal Account. If you withdraw your consent to receive documents and disclosures electronically, your only option is to receive documents and disclosures in a paper format. To withdraw your consent and terminate your Portal Account, please call us at 610-313-0910.

By creating a Portal Account, and then accessing your Portal Account, you are indicating that you have reviewed all of the Documents and Disclosures made available to you on the Website. You are also acknowledging that your initial use of your Portal Account will constitute your agreement to be bound by the terms and conditions contained within such Documents and Disclosures.

By agreeing to this Statement, you acknowledge that you have read, understand, and agree to be bound by the terms above. If you do not agree to be bound by the terms above but would like to establish a Portal Account, DO NOT continue with the online process. Instead, please send us an e-mail at info@fortis-wealth.com or call us at 610-313-0910

Because the Fortis Portal Account relates to the functionality of the Website Fortis reserves the right to refuse to establish a Portal Account that is not subject to this Statement. You agree that the Documents and Disclosures required to be provided at the time a Portal Account is being created and any supplemental agreements or subsequent notices of changes or amendments will be provided electronically, and you confirm that you will download or print all electronically-provided documents for your records. You acknowledge that you can access the Documents and Disclosures that are provided electronically on the Website and via e-mail.

TERMS OF USE

BY CREATING A PORTAL ACCOUNT ON FORTIS WEALTH’S CLIENT PORTAL AT (THE “WEBSITE”) IN ORDER TO OBTAIN ACCESS TO AUTOMATED INVESTMENT INFORMATION THROUGH THE WEBSITE (“SERVICES”), YOU AGREE THAT UNLESS INDICATED OTHERWISE, THE DOCUMENTS AND DISCLOSURES REQUIRED TO BE PROVIDED TO YOU WITH RESPECT TO YOUR PORTAL ACCOUNT AND ANY FUTURE PORTAL ACCOUNTS UNDER APPLICABLE LAWS AND REGULATIONS MAY BE PROVIDED TO YOU ELECTRONICALLY. READ THE INFORMATION BELOW CAREFULLY BEFORE CONSENTING TO RECEIVE DOCUMENTS AND INFORMATION ELECTRONICALLY AT THIS WEBSITE AND VIA ELECTRONIC MAIL (“E-MAIL”).

YOU SHOULD PRINT OR SAVE THIS STATEMENT BY USING THE “PRINT” OR “FILE SAVE” OPTIONS ON YOUR INTERNET BROWSER. ANY CHANGES, MODIFICATIONS, OR ADDITIONS TO, OR DELETIONS FROM, THIS STATEMENT SHALL BE EFFECTIVE UPON POSTING ON THE WEBSITE AND WE WILL NOTIFY YOU THEREOF BY E-MAIL AND/OR BY POSTING A MESSAGE ON THE WEBSITE OR TO YOUR PORTAL ACCOUNT.

In this Electronic Agreement and Disclosure Statement (“Statement”), please remember that “you” and “your” refer to the person who is establishing a Portal Account, as well as any future accounts, and “we”, “us” and “our” refer to Fortis Wealth (“Fortis”). Relevant agreements, documents, forms and other information, including without limitation disclosures required to be made or furnished by Fortis with respect to all Portal Accounts, by the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and other applicable laws and regulations (collectively, “Documents and Disclosures”), will be provided to you electronically unless indicated otherwise. Among such Documents and Disclosures to be provided to you electronically with respect to your Portal Account and any future Portal Accounts that you may create are the following:

The Fortis Website User Agreement and all amendments, notices and other agreements which supplement or relate to such User Agreement;

The Fortis Discretionary Investment Advisory Agreement and all Account application forms, agreements and documents required to be completed and submitted to a designated broker-dealer and Custodian (“Broker Documents”) and all agreements, amendments, notices and other agreements which supplement or relate to such Discretionary Investment Advisory Agreement and Broker Documents;

The Fortis Form ADV Part 2A Brochure and Part 2B portfolio manager supplements in compliance with Rule 204-3 under the Advisers Act;

Notice of the Fortis Privacy Policy

All other required and permitted legal disclosures; and

Any other notices and communications pertaining to your Portal Account and Services.

BY CREATING A PORTAL ACCOUNT, AND THEN ACCESSING YOUR PORTAL ACCOUNT, YOU ARE ACCEPTING THIS STATEMENT AND CONSENTING TO RECEIVE DOCUMENTS AND DISCLOSURES ELECTRONICALLY.

Following the termination of your status as a Fortis Client, the information regarding your Portal Account, including the Documents and Disclosures, will be available upon request by sending us an e-mail at info@fortis-wealth.com or by calling 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. When revised or new Documents and/or Disclosures are available on the Website, to the extent relevant or applicable to you and if required by applicable legal, regulatory or contractual requirements, we will send a message to your e-mail address on file or otherwise notify you of their availability.

You are responsible for maintaining a valid e-mail address and all software and hardware necessary to receive, read and send e-mail. You must provide us with your current e-mail address when you establish your Portal Account and promptly notify us of any changes to your e-mail address by updating this information in your Portal Account on the Website.

To receive electronically the Documents and Disclosures, you will need access to a computer and web browser and may also need Adobe Reader, Microsoft Word and Microsoft Excel. You also will need access to e-mail and to a printer or the ability to download information in order to keep copies for your records. To the extent we make changes to the system hardware and software requirements that you need in order to receive and access the Documents and Disclosures electronically, we will notify you of those changes via e-mail and/or by posting information about the new system requirements on the Website. By establishing and then accessing a Portal Account you are indicating that you have the capability to access the Documents and Disclosures and download or print copies of them for your records.

For client support or technical assistance regarding your Portal Account, including the 2 Documents and Disclosures and the Website, you may send an e-mail to info@fortis-wealth.com or call us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. You may request a paper copy of any of the Documents and Disclosures at any time by sending us an e-mail at info@fortis-wealth.com or by calling us at 610-313-0910 or such other phone number(s) as Fortis may specify on the Website. We will not charge you a fee for the paper copy.

This consent to receive the Documents and Disclosures electronically will apply on an ongoing basis unless you withdraw your consent. You may withdraw your consent to receive any of the Documents and Disclosures electronically by sending us an e-mail at info@fortis-wealth.com or calling 610-313-0910. However, if you do withdraw your consent Fortis will terminate your Portal Account. If you withdraw your consent to receive documents and disclosures electronically, your only option is to receive documents and disclosures in a paper format. To withdraw your consent and terminate your Portal Account, please call us at 610-313-0910.

By creating a Portal Account, and then accessing your Portal Account, you are indicating that you have reviewed all of the Documents and Disclosures made available to you on the Website. You are also acknowledging that your initial use of your Portal Account will constitute your agreement to be bound by the terms and conditions contained within such Documents and Disclosures.

By agreeing to this Statement, you acknowledge that you have read, understand, and agree to be bound by the terms above. If you do not agree to be bound by the terms above but would like to establish a Portal Account, DO NOT continue with the online process. Instead, please send us an e-mail at info@fortis-wealth.com or call us at 610-313-0910

Because the Fortis Portal Account relates to the functionality of the Website Fortis reserves the right to refuse to establish a Portal Account that is not subject to this Statement. You agree that the Documents and Disclosures required to be provided at the time a Portal Account is being created and any supplemental agreements or subsequent notices of changes or amendments will be provided electronically, and you confirm that you will download or print all electronically-provided documents for your records. You acknowledge that you can access the Documents and Disclosures that are provided electronically on the Website and via e-mail.